Positive on servers and wafer fabrication business, HSBC doubled its target price for Intel Corporation (INTC.US) to $200.

HSBC has significantly raised the target price for Intel Corporation (INTC.US) and believes that with the acceleration of growth in the server processor business and continuous improvement in wafer foundry business, the company's profit prospects for the next two years are expected to exceed market expectations. HSBC has raised Intel Corporation's target price from $100 to $200, setting a new high on Wall Street, and has reiterated a "buy" rating. HSBC analyst Frank Lee stated that Intel Corporation is reallocating internal wafer factory capacity, increasing server CPU production capacity, and is expected to achieve unexpected growth in server processor shipments in 2026 to 2027. HSBC predicts that Intel Corporation's server CPU shipments in 2026 will increase by 25% year-on-year, higher than the previous estimate of 20%, and has raised revenue forecast for the Data Center and AI (DCAI) business to $24.1 billion, about 4% higher than market consensus. For 2027, HSBC has further raised the server CPU shipment growth forecast from 20% to 30%, believing that with the faster progress of the 18A advanced process technology than the company's internal expectations, and more capacity leaning towards server products, Intel Corporation's growth potential is still underestimated by the market. In addition to the server business, HSBC believes that Intel Corporation's wafer foundry business prospects are also improving. The institution pointed out that as Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US) is expected to gradually release additional 3-nanometer capacity by the second half of 2027, more and more chip design companies are starting to look for new foundry partners, with Intel Corporation becoming an important beneficiary. HSBC stated that Intel Corporation has received orders from customers such as Terafab and Apple Inc. (AAPL.US), and is also in talks for cooperation with Alphabet Inc. Class C (GOOGL.US) and NVIDIA Corporation (NVDA.US). Furthermore, in the advanced packaging field, as Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADRCoWoS advanced packaging capacity remains tight, customers are also seeking alternative solutions. HSBC believes that Intel Corporation's EMIB (Embedded Multi-Chip Interconnect Bridge) advanced packaging technology has clear advantages. The report pointed out that most of the current CoWoS-L capacity has been allocated to NVIDIA Corporation, and CoWoS-S has limitations in chip size expansion. In contrast, EMIB can support larger scale chip packaging, providing more attractive alternatives for AI chip customers. HSBC believes that the server processor, wafer foundry, and advanced packaging businesses are expected to collectively drive continuous improvement in Intel Corporation's performance over the next few years, and become new growth engines for the company.